The broad market exchange-traded fund SPDR S&P 500 ETF Trust (SPY) was down 0.9% and the actively traded Invesco QQQ Trust (QQQ) was 1.3% lower in Friday's premarket activity as mounting inflation concerns linked to Middle East tensions and stronger oil prices reduce appetite for risk assets.
US stock futures were also lower, with S&P 500 Index futures down 1.1%, Dow Jones Industrial Average futures slipping 0.7%, and Nasdaq futures retreating 1.5% before the start of regular trading.
The New York Federal Reserve's Empire State manufacturing index rose to 19.6 in May from 11.0 in April, compared with expectations of a decrease to a reading of 7.2 in a survey compiled by Bloomberg and the strongest reading in over four years.
The industrial production data for April will be released at 9:15 am ET.
In premarket activity, bitcoin was down by 1%. Among cryptocurrency ETFs, the cryptocurrency fund ProShares Bitcoin Strategy ETF (BITO) was 1% lower, Ether ETF (EETH) retreated by 1.7%, and Bitcoin & Ether Market Cap Weight ETF (BETH) lost 0.03%.
Power Play:
Industrial
The State Street Industrial Select Sector SPDR ETF (XLI) retreated by 0.6%, while the Vanguard Industrials Index Fund (VIS) was flat and the iShares US Industrials ETF (IYJ) was inactive.
Babcock & Wilcox Enterprises (BW) stock was down more than 10% before the opening bell after the company said it priced a public offering of roughly 10.8 million common shares at $18.50 apiece, subject to customary closing conditions.
Winners and Losers:
Financial
The State Street Financial Select Sector SPDR ETF (XLF) retreated by 0.2%. Direxion Daily Financial Bull 3X Shares (FAS) was down 0.7%, while its bearish counterpart, Direxion Daily Financial Bear 3X Shares (FAZ), was 0.9% higher.
HSBC (HSBC) shares were down more than 3% pre-bell after the Financial Times reported the bank has yet to deploy the $4 billion it previously committed to its private credit strategy, with no current timeline for the planned investment.
Consumer
The State Street Consumer Staples Select Sector SPDR ETF (XLP) was up 0.3% and the Vanguard Consumer Staples Index Fund ETF Shares (VDC) was flat. The iShares US Consumer Staples ETF (IYK) was inactive. The State Street Consumer Discretionary Select Sector SPDR ETF (XLY) lost 1%. The VanEck Retail ETF (RTH) gained 1.5%, while the State Street SPDR S&P Retail ETF (XRT) was down 0.7%.
Tesla (TSLA) shares retreated more than 2% pre-bell after Reuters reported that the company came under pressure from an Australian judge, who questioned whether the automaker was taking the discovery process seriously in a class action over alleged vehicle defects and misleading claims.
Technology
The State Street Technology Select Sector SPDR ETF (XLK) retreated 1.8%, and the iShares US Technology ETF (IYW) was 1.8% lower, while the iShares Expanded Tech Sector ETF (IGM) was down 1.5%. Among semiconductor ETFs, the State Street SPDR S&P Semiconductor ETF (XSD) fell by 2.7%, while the iShares Semiconductor ETF (SOXX) declined by 3.1%.
Taiwan Semiconductor Manufacturing (TSM) shares declined more than 2% in premarket activity after the company said it plans to reduce its stake in Vanguard International Semiconductor to 19% from 27.1% by selling 152 million shares.
Health Care
The State Street Health Care Select Sector SPDR ETF (XLV) retreated by 0.1%, the Vanguard Health Care Index Fund (VHT) was down 0.3%, while the iShares US Healthcare ETF (IYH) was inactive. The iShares Biotechnology ETF (IBB) was 0.2% lower
Alumis (ALMS) stock was down more than 1% premarket after the company reported a Q1 net loss and lower revenue.
Energy
The iShares US Energy ETF (IYE) gained by 0.9%, while the State Street Energy Select Sector SPDR ETF (XLE) was up by 0.5%.
BP (BP) shares retreated by 0.9% pre-bell. Reuters reported that the company is contemplating selling certain natural gas assets in Egypt.
Commodities
Front-month US West Texas Intermediate crude oil advanced by 3.4% to $104.62 per barrel on the New York Mercantile Exchange. Natural gas was up 1.7% at $2.94 per 1 million British Thermal Units. The United States Oil Fund (USO) increased by 2%, while the United States Natural Gas Fund (UNG) was 1.5% higher.
Gold futures for May retreated by 2.8% to $4,556.20 an ounce on the Comex. Silver futures fell by 7.9% to $78.62 an ounce. SPDR Gold Shares (GLD) was 2.1% lower, and the iShares Silver Trust (SLV) declined by 5.8%.